Former Kansas banker sentenced to eight months in jail for wire fraud

A former Labette banker has been sentenced to eight months of imprisonment plus four months of home confinement for a wire fraud scheme that included misappropriating funds from a bank and insurance company.

Keith L. Shaffer, 61, of Altamont, was convicted in a jury trial last fall on charges of misapplication of bank funds, wire fraud, misappropriation of insurance funds and making false statements on a federal tax return, according to a press release issued Monday by U.S. Attorney Tom Beal. He was sentenced Monday.

Evidence from his trial indicated Shaffer, an employee of Labette Bank, diverted more than $134,000 in commissions on sales of insurance belonging to the bank to his personal account, according to the release. At the time, Shaffer was managing a bank subsidiary called Labette Insurance Co. and was a salaried employee of the bank; all commissions paid on sales by Labette Insurance belonged to the bank.

During the trail, prosecutors also presented evidence to show that as part of the scheme, Shaffer submitted false information to the bank and to the Internal Revenue Service.